Latin banking: Strength in numbers

In the wake of a landmark investor survey of Latin America’s banking sector, LatinFinance takes stock of a range of views of investment professionals weighing up the merits of a fast evolving industry

One notable result of the inaugural Itaú 2013 Investor
Outlook for the Latin American Banking Sector is the sense of
assuredness investors have expressed for the industry
– at a time of considerable broader anxiety over the
future of global banking.

The picture that emerges from the study – produced
jointly by LatinFinance and consultancy firm Management &
Excellence (M&E) – is of a generally
well-regulated industry that features conservative management
across broadly resilient economies that, in turn, offer their
banking sectors ample scope for growth, not least in areas such
as wealth management and corporate bonds.

Colombia and Brazil are both surprises in the survey,
although for strikingly different reasons.
Colombia’s government and banks are increasingly
trusted, creating a virtuous circle. Meanwhile, Brazilian bank
profits are being curtailed by an interventionist
administration.

Investors are increasingly focused on the industry. Chevy
Chase Trust, with $13 billion under management, is overweight
Latin banks,...